bunkers than probably all those players on the site. so i can tell. the key there is just stay on the fairway and make your greens it will be easier for them to do than for us. you can see, when they miss, what happens >> if i throw it, i might hit the fairway, thanks, sarat, i got to go. the markets have some gains a little bit, enjoy the three-day weekend for juneteenth "squawk on the street" is next good friday morning, welcome to "squawk on the street." i'm carl quintanilla we have a bounce in store, not enough to prevent the worst week for the s&p in three years futures point to a bit of a relief rally the s&p, worst week since 2020 >> plus shrugging open recession

warnings president biden says it's not inevitable and says there's reason for optimism because of the strength of the u.s. economy. shares of adobe, we'll be watching them closely. right now they're down the software company did issue a weaker than expected guidance for the current quarter and the full year, carl. >> all right, guys ahead of that three-day weekend, let's begin with the markets trying to rebound from yesterday's big selloff. ron barron is saying is this an '82-like buying opportunity? >> look, having bought stocks in '82, i would say the difference is that that was volcker taking rates up so high the market started to rally before the volcker peak, 19% fed funds rate when i look at what would possibility cause a bottom here, believe it or not, i'm going to go back to what you said yesterday about the selloff at 4:00 a.m., because there were no

buyers whatsoever. we're talking at every single level. let's go back to adobe adobe's very important because almost all the notes were negative about what chauncey said he was somewhat optimistic in his outlook. people said when he cut the outlook, which he didn't, he just said there were currency issues, issues involving seasonal weakness. but the scorn, the quiet scorn for one of the great executives of our time that people had, i think was very interesting it shows that people are fed up. when are they fed up when the stock goes down j gigantically that's how you get a bottom, you finally get these analysts -- you have adobe, it's where it was on november 21st, the top of

the market, everybody loved it now they don't like it at 700 they loved it they had to wait until it went down 50% >> what i wonder is what adobe's numbers are really going to look like if we do have a recession i wonder overall whether we'll continue to have potential bear market rallies levels will keep coming down i can't figure out what earnings are going to look like a years from now >> 20% revenue declines since 2009 >> that's a pretty big number, 20% off your top line. >> tony is normally -- what's that about >> in the last 48 hours? >> i think he was one of the -- yesterday. >> all right >> this is a very good piece the 20% revenue decline is significant. that's called the great recession. the great what >> this is going to be the seventh time in eight quarters

that adobe has fallen on earnings the day after >> isn't that amazing? and now they're finally skeptical. we got price target cuts but no downgrades almost everyone on the street still loves it when are they going to break ranks and downgrade it, isn't that what you're waiting for, buy and hold, like toll brothers >> we've had a lot of research, the body of which is somewhat interesting but these price targets are worthless. yesterday's comes to mind, neutral on warner brothers discovery, which has just been horrific in terms of the performance of the stock since the deal, and yet they had a $22 price target, 22 bucks how can you not have a buy when you see a stock saying it's going to go up nobody wants to do that. >> all the price targets are way too high because they didn't cut price targets and they didn't downgrade when they had a chance >> right >> to use the adobe because it's front and center, shantanu is

trying to be optimistic. >> you talk about the success of the management team, the change in the business model that took the company to another realm you're asking tough things >> ubs goes from 450 to 415. keep in mind, the stock's at 360, okay? bear goes from 550 to 450. credit suisse goes from 525 to 425. bank of america -- i don't want to overdo this, but because the price targets were so high, there isn't a single guy who actually lowers the price target to below where the stock is. they all are still higher. and carl, it's very hard to get a bottom when no one downgrades. >> that's why they call it the sell side. now, that said, bear gets optimistic on axp, we go to

outperform they saiy panic selling is creating an opportunity. >> they're right, the stock goes down consenistently look at this, there was a moment when the stock was 185 and things were going great. i think now you should look at it if you haven't looked at it yet. i think that makes sense >> there's a lot of pain, man. >> you wore the same outfit on tuesday. >> no, i didn't. these are the black jeans. on tuesday they were blue. >> how about the amazon article? >> the amazon article was very interesting. they were referring to a very long takeout in "the journal" on amazon, talking about how they overexpanded dramatically in part because they rely on some sort of proprietary net trick.

>> algorithm >> that told them that demand was going to skyrocket they went to the high end what have that metric was telling them and as we know, the hiring -- and we pointed this out during the period it took place, the hiring was unlike anything we've seen in corporate america, hundreds and hundreds of thousands of employees now 1.6 million employees at the company. and something i've reported, it's been reported since, they're subleasing warehouses they no longer need because they built them for demand that has not come of course the stock has been cut by a third andy jassy's salary was cut. it would seem the decisions that led to this were not his >> i apologize, because i thought it was jassy that overhired. very clearly it was not. >> bezos stepped back in during the pandemic in a more

significant way. he was still ceo and in part made some of these decisions. they also lost the head of retail, clarke left, went to flexboard. >> it's not as big as amazon >> no, it's not. >> it's a great piece. worth looking at >> that piece was amazing. i want to apologize to andy jassy, i did not know he had nothing to do with the overbuilding and instead has been trying to rationalize it. they could be jay powell's best friend they've made me question the acquisition of the company that helps build warehouses >> not to mention that huge deal for duke >> yeah. what's happened here people can be that wrong >> i don't know. over time there is still -- the demand will be met, it's just that we have a bit of a backup right now. there was an expectation at

amazon that what they were seeing during the pandemic would continue like this >> they had that horrible quarter, now it's more on bezos than on jassy. yet i pointed the finger at jassy. >> it happens. >> i made a mistake. >> jassy didn't stay during the call this wasn't my fault. >> he didn't say that. jay did, jay said some of the stuff was his fault. >> jay powell you're speaking about. >> i think we need to retire "jay." jerome powell. >> fed chief powell. >> aren't you mr. big guy? i call him jay i'm going to call him fed chief powell maybe that will change his luck. >> retail inventories and discounts was the other big news inventories like you've never seen on the way. shanghai noticed last night,

shanghai l.a. freight rate >> every time you think you're out of the chinese market, they pull you back in >> you're referring to a real rally today in chinese technology-related companies in part because of a story in reuters that says chinese banks have set up a financial holding company. this was set to be two years plus ago, i think it was two years ago, the largest ipo of all time it's still 33% owned by bob, is that what the equity stake is? and now of course there's speculation once again that given that, it could raise hopes that the chinese regulators are easing their crackdown and that maybe you would even see a public end at some point >> or a public ma. >> jack ma has not been in public very often. >> you found him using a gps

locator? >> this thing called a phone it's amazing >> you do not have jack ma's phone number >> i'm not discussing whose phone numbers i have and whose i don't. >> i don't have anybody's phone number that big. >> you have everybody's phone number, in fact most of them text you during the show >> some text me. here's a guy that says the phillies quarter has been missed three times. that was really great news, that and about -- and the dow holding down 19% would be significant. isn't it interesting how wrong the dow is they need to retire the dow. >> i've been saying that forever. >> you have been saying it forever. >> bofa, whom we watch closely because they were so early in saying to tell, today nibble at 3,600, gorge at 3,000. opportunities for second half -- >> i have gorge at 3,000 and

purge at 360 you quoted the most significant thing i've seen. >> you liked that poll today >> oh, my god. >> the client poll at jpm, at what level would you be comfortable buying xpx the range went from 3500 to 2,000. >> don't you think that's significant, they all want to buy it when it's cut by -- >> yes, it was significant >> no,i mean you should say something like, yeah, i read it, it was really significant. >> i read it and it was really significant. >> we got industrial production after the break. don't go away. (vo) some bonds last a lifetime. some bonds inspire confidence, and some you grow to rely on. these are the bonds worth investing in. for over 50 years, pimco has reinvented fixed income to create opportunities

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welcome back to "squawk on the street." rick santelli here we're going to be having some breaking news shortly. our may read on industrial production and capacity utilization is hitting the wires as i speak up 0.2, half of expectations in the rearview mirror, at least up to now, we have the last release up 1.1 up 0.2 since service negative in september at minus 1.22% and maybe the more utilization rate for may, 79.0.

why is that good because we just jumped into the highest utilization rate since 2008 when the range was 79 -- i'm sorry, 79.0 remains only out to 2018. if it jumped up another half a percent it would have made it down back to 2008. so these are lofty levels, for sure, a four-year high revisions trickling in last month's 1.1 now stands it up 1.4 quon the street" will return after a short break

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breaking news regarding pfizer and moderna vaccines. let's get to meg tirrell, good morning, meg >> hey, carl they're getting authorization for their vaccines down to 6 months of age, the youngest age group eligible for vaccination, the only age group so far that has not had access to the vaccination. moderna's vaccine is up to 17 years of age down to 6 months. pfizer, this authorizes them for 6 months to 4 years old. this was widely expected after the committee unanimously voted on wednesday now this will go to the cdc which will be discussing this with advisers today and taking a vote tomorrow. if that vote is favorable and the cdc director signs off, the doses could start to become available early next week to parents of kids under 5. >> meg, really quick, production abilities and forecasts, where are we right now with the

vaccine? >> right now they've made millions of doses of this vaccine available for this age group. states have ordered them there's not expected to be any sort of production, you know, supply inadequacy for this age group. what we're looking to is the fall and the u.s.'s ability to purchase more vaccines there is some funding for probably the most vulnerable groups but the government has said they will need more funding to purchase enough vaccines if we need boosters for everybody in the fall that is something the fda will consider on june 28th, what the fall should look like, what the boosters themselves should look like, and who should be getting them that is definitely a question for later in the year. >> meg, just remind people, what has been the uptake for kids above 5? it's been auth but i think you've reported that not that many have been getting vaccinated, perhaps that will be a sign of reluctance by parents to vaccinate their younger kids. >> yeah, absolutely, each

younger age group, we've seen less and less uptake, 30% for kids 5 to 11 who have been vaccinated polling suggests only 20% of parents of kids under 5 want to go out and get shots for their kids right away. some very vocal parents absolutely want to go out and get protected, so we'll probably see an initial rush and then a falling off of demand. it should provide protection against hospitalization and death. even though it's very rare in this age group, experts say it's something parents should consider >> meg, let me trace a scenario out. this is not going to matter to any stocks because they're all pathetic what would happen if president xi said, you know what, i've been waiting for this news to give this vaccine, we have 500 million biontech which is not u.s., it's europe, and we're going to start giving it is there any chance, hope, idea, that president xi will relent in

his ability to try to control and an controllable disease by keeping people locked down >> i think there's a hope that that will happen because certainly almost every public health expert i've heard talk about this don't think that trying to lock things down is the way to control this. it's only a stopgap measure to being able to vaccinate people, as you've just pointed out but whether there will be a real relenting on that i think is an open question. but certainly nobody in public health thinks that's sustainable or productive. >> excellent, meg, thanks. how do you think, it's been a while since public health and the virus has been the top of our conversation, but could that return as a leading dynamic in the fall >> well -- >> to the extent that it limits activity >> look, i have to take my cue from someone who knows more than i do, mr. broussard from humana, who said, listen, it's really not as bad as the flu anymore.

the flu season comes and we don't think, wow, we have to keep everyone apart. the one thing that's true and this hurt amazon, you still have to have quarantine the next thing that may happen is we may go away from quarantine >> i don't disagree, i think we will if you're sick, stay home. >> maybe we should do that for everything >> of course we should >> i had perfect attendance when i grew up. that's wrong >> i do not want you to work when you're sick i want you to stay home. >> okay, mom >> i really do >> thank you, mom. >> you're welcome. >> the sick day -- >> looking out for you >> -- has blown up you don't need any excuses now, if you don't feel well, don't come in. >> you still have to work, you still have to be in front of your computer. >> they're in the metaverse, partner. >> i was at our hq this week, it

was awesome, there were so many people there, it was great the next day, crickets >> where do you work >> it's a secured location >> it was wonderful, seeing all those people where did they all go the next day? i don't understand it's only wednesday? >> why did they quote me on the jassy thing? they're trying to get me on the wrong side of jassy. >> they hate you >> the whole world revolves around you >> you're a stock pundit >> we'll got the stock pundit's mad dash and the opening bell anin a few moments. don't go anywhere.

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two and a half minutes before we end the trading week >> let's get a mad dash in >> we have "mad money," there used to be a show, "mad," with

jon hamm >> yes, "mad men." >> i'm talking about utz as a mad dash this is a spac it's above -- >> it's above ten bucks. >> because they have cheese balls, my wife's favorite food, they give us these gigantic cheese ball things >> with the baconator? >> no, that's out. goldman sachs upgrades this. this is a spac that i found did not hurt people. and one of the reasons they love it, yes, i'm being facetious, but i thought this was significant, david, while we saw savory, salty snacks outperform sweet snacks, we're seeing consistent robust growth in snacking so they upped this i think this is kind of a watershed moment, the spac doubled, it goes down, down,

down, and goldman adds this because it's a defensive spac. david, not every spac is bad >> no, not every spac is a disaster most are not all are. >> i thought this was very interesting that the cheese ball spac worked. it's a cheese ball cheese ball. >> it was remarkable yesterday to listen to chenos talking about spacs, at one point last year soaking in 3 billion in cash a night, equivalent to the entire u.s. savings rate, which struck chenos as the height of absurdity. >> he's doing very well. i have no idea if he did that. >> some of the spacs are just giving back the money and saying, here >> we pointed out how many spacs are out there are two-year time limit and are they really all going to be able to find the deal well over 500 are looking for a transaction. >> that's ridiculous

>> in this market in particular. there may be some bargains now very difficult >> i had boxt, that's now at $1.37, okay? put that together, utz, boxt, they're almost back in [ bell ringing ] >> you like that next door >> guys, check this out, jim loves the metaverse. >> i do. >> here at the big board we have a collaborative, a sustainable consumer products company, backed by richard branson at the nasdaq it is journey, creator of immersive experiences, ringing the bell in the metaverse. >> you know what, those are two companies ringing the bell, i'm going to leave it at that. do you want to comment more? they're two companies ringing the bell a spac by richard branson that

does -- >> branson, man, he keeps the spacs coming is that what our future is >> that is our future, that's what our show will look like >> that will be us we have our metaverse little thing too. >> look at those avatars >> there we are in the metaverse. >> jim is pointing to the sky. >> nice. >> look, they got me in the right outfit >> i do like that. >> how many years until we're replaced by our avatars? >> one >> you will not be able to tell, when nvidia, which goes down every single day, i had to rename my dog utz. that was funny >> you call your dog utz >> remember she said to jeremy

renner -- >> nvidia is actually up >> i'm going home, that's it, no more need to comment talk to you later, good to see you, partner i'm going to sit here, i got the branson thing. there's no hand-heads, i have to go like this i'm going for the branson thing. >> branson's not here. >> he's not? >> no. >> jim, really quick, we lost the futures, the premarket gains, dow is down at the open >> of course >> although the pain has been plain, six straight weeks of equity inflows another $15 billion last week. even though the outflows from high yield and investment grade -- >> oh, god, the high yield, i hope david gets into the hyg it's not enough to make up for a central bank selling stocks. >> that's the reference

yesterday. we don't know if the swiss national bank was selling stocks >> today may be a day when everyone just says, of course it's down, maybe that's a day, watch adobe, watch out >> it is worth discussing the financial markets. they're getting tougher. not a surprise >> of course >> it's not a surprise there are number of deals out there. i know people want to focus on kohl's it's nothing like the '08 period, it's nothing like that you have to pay more for it. >> what's big in the -- >> umm, teva >> telco too >> no. charter. >> really? >> i don't know. >> that's true, i told you this during the break >> you did

but my short term memory hasn't gone because i remember you told me these things. >> my wife just said to me, you're dead for mentioning the baconator. >> she doesn't watch the show. >> she put it on, i can't believe it someone must have texted her >> we're going to keep an eye on the financing markets because there has been a nice pace to deal making even despite this volatility of late, very difficult to negotiate a price when you have this kind of volatility at the same time we have a lot of lbos potentially lined up a difficult financing market can make this a lot harder plus bring the price down if you have to pay more, obviously, increase your equity check as well doesn't mean deals are dead but certainly -- >> these are the levered deals >> correct closely watched. >> ft noted yesterday $100 billion in junk debt trading, which we classically describe as

distressed >> high yield doesn't do well in a recession. >> sure doesn't. >> it's very interesting, you compared it to 2008. people are doing that. >> they want to, but it's not. most of them doing that didn't actually live through it >> true. >> we used to talk, you've got a lot of younger traders, younger investors, asset allocators in their 30s who were not working in those days. >> do they have an allocation for bitcoin? what's the margin rate for bitcoin? if the fed were smart, they would change the margin rate for bitcoin. if the fec were smart, they would say, listen, we're done with this idea that they're not securities but they didn't do it. neither of them did it they completely let us down. >> on rates, on regulation >> it's like bernanke could have done, they could have raised how much money you have to put down for a house, but they didn't do that they have power to do this stuff but they always claim that they don't. it's amazing that they claim they don't have this kind of

power. meanwhile the former president claimed he had the power to do something to pence that they don't even talk about. >> it's the worst week for bitcoin, down almost 30% for the week we've got 72 of the top 100 coins, jim, down 90% and i know we talked about three arrows earlier this morning. >> do you know that dogecoin is now 95% from when -- >> musk? >> "snl. the elon meeting yesterday was very kind and nice >> the twitter meeting >> yes >> tell us what you heard. >> so it was run, really, you know, by that terrific cmo, okay, by leslie burrland, she's sensational. there was comity, c-o-m-i-t-y, w where she would ask the questions. when elon would veer too much towards, say, aliens, she would bring him back

a lot of people came back impressed at how much work he had done and how kind he was and they were kind of surprised he wasn't arrogant at all and that he had a great relationship with leslie, an important cmo people came back and said, you know what, this is very for real and he is a respectful man >>do you believe a billion users is feasible? >> i think, look, i've never doubted this man's abilities i was very glad to hear he was bo both humble, no conversation, nobody has questioned his rigor. >> he can get on the assembly line anywhere and spot anything that is -- potentially needs to be dealt with. he can walk into spacex as well and do the same thing. >> so i say yes, i think he can do it. >> musk is unique. >> i was so thrilled, he was even fun and funny >> all of which adds up to absolutely nothing in terms of whether he's going to follow through and buy this company at

54.20. >> who has insight >> i think -- >> you just dismissed my insight. >> i said it's not necessarily connected with the fact that he's going to buy this company for $44 billion, most of which is in cash coming from him >> that's true >> cash for a guy whose net worth is still one of the highest on the planet but obviously down from when tesla was a trillion dollar company. >> by the way, morgan stanley has a note today about the auto business in a recession. he writes, apart from elon, no other auto ceo has running the bell with a warning on recession. in our view this could change prior to q2 earnings season. he mentions ford noting rising delinquencies. >> delinquency in this market is different, it's worth more than what they bought it for, it should be positive did ford have another recall today or was that just yesterday? >> i don't know, but can you see tesla is potentially going to

raise price? perhaps as much as 6,000 heading into a recession, that's not exactly a grabber. it's not clear we are, but we possible we are and he even int intimated. maybe the demand will be there >> i think there will be you don't have to advertise, you're just selling out, that's pretty amazing by the way, ford should sell its rivian because why would amazon need all these trucks, advance, if they're trying to cut back? >> eventually amazon is going to need them. it's not as though their demand eventually -- >> what will they do, just park them in a giant amazon parking lot? >> will rivian be able to make enough of them in a short amount of time that it will really matter >> why, do you think they will have problems? >> i'm just saying, amazon wants 100,000 of them. they're not going to get them this year.

>> i think it was bezos that wanted those, not jassy. >> interesting how that split is sharpening >> isn't that something? >> how it fooled even bezos, one of the great innovators at scale. >> amazon can't understand it. >> subletting warehouses why would they need all these rivians? they're subletting warehouses. >> well, they still are delivering millions and millions -- i mean, they're delivering, they're fulfilling millions, tens of millions >> there's still prime >> it's not like amazon is not doing what it does they still want to go to same day delivery consistently. >> i just thought that article was -- you know, i'm just praising the article boy, that was eye-opening. bezos was just hiring like mad jassy goes over to amazon web services to the regular part and says that's not how we do it can you imagine that every day, that's not how we do it, david,

that's not how we do it, david >> meanwhile, it is worth recalling that amazon web services is still the profit engine of this company, only a seventh of the revenue but the bulk of profitability. and advertising, by the way, which also has a very significant margin but which could be threatened if we have margin, high growth business >> does it matter to you that oracle had a good quarter, even though you may disagree with the adobe guidance, is that just irrelevant i think these companies are rather amazing that they had good quarters. i think meta is going to have a good quarter >> then why not back up the truck at 350 on adobe? you have a three year time horizon. >> i'm not going to disagree with that. >> any doubt that -- we mentioned the mega cap tech selling yesterday but it's outperforming the s&p the last few days do you have any doubt that mega cap balances first >> i think mega cap is trying to

put in a bottom. i asked that question of meg, can you imagine what these stocks would do if president xi would join the council of nations? we're all kind of -- i don't know why more people don't talk about the fact that china has got us hostage is semis and it turned out russia had food and oil, that's all you needed to be a great power. >> putin's speech today is pretty chilling, the notion that the west thinks they are the center of power globally he's well aware of the leverage he has regarding gas today, italy saying we may have to put emergency -- >> they're claiming a number of components they can no longer receive but there are people questioning that in terms of nord stream not delivering as much gas as it's supposed to be. exxon, chevron, energy in general has been down a little

lately there's a growing belief from people who don't know anything about geopolitics, they manage money. there's a growing belief that zelenskyy will be forced to somehow negotiate and therefore -- because europe cannot handle what's coming their way, they cannot handle the shutdowns that will have to take place in terms of their industrial sector because they don't have enough energy therefore they're ultimately be forced to say you have to figure out a way to accept the victory that you have. and therefore the war ends in some way, although i don't know -- you're still embargoing russian oil. maybe the wheat gets out in general. >> why don't they have a meeting, the british and french, with putin in munich commemorating another great opportunity, 1938. >> all right, yeah >> and cut out ukraine

would that be unbelievable remember they cut out the czechs, benes was a democratically elected president, they cut him out in munich can you imagine if they cut out zelenskyy in a four-power meeting? >> no, i can't but europe, we do need to start to focus on what europe's needs are going to be in terms of energy and whether they're going to be able to withstand what's coming their way >> freeport l&g today, force majeure through september. >> unbelievable. >> even our best intentions are not going to be enough >> no, freeport i know well. >> freeport i know well, michael has been a guest with us >> the whole west is paralyzed by one small country the size of belgium that has food and oil. and the west is going to capitulate and there will be peace in our time >> macron is chamberlain

>> not wilt chamberlain. >> wilt was dominant >> in a number of different ways >> still have to have fun. >> my dad went to wilt chamberlain's high school, overbrook. >> congrats to steph curry, by the way. >> we're getting like a bottom in apple there's another show where people talk about unusual activity there's no unusual activity in seattle gen but it does go up. no unusual activity. >> why are you pointing out seattle genetics there's a belief there will be continued consolidation among some biotech companies that big pharma continues to buy. >> dr. segal is gone i see this go up merck has a relationship every day. >> what's the symbol >> sgen.

look at this stock look at this stock reverse head and shoulders, buying every single day, it reminds me, remember when pfizer bought -- >> merck is a large company. >> is that the name that you are positing that conceivably would be a buyer of seattle injgenetis >> adobe is not going down any more apple is up big. and that may be, remember, we got a piece today, kind of an old times piece about how apple's brand name, the brand name is worth $1 trillion. >> speaking of which, we do got news on s.n.a.p., this premier service. roadblocks, they go to hold, 2029 >> this has outperformed --can we get a chart of roblox

look at this chart now is the time, david, to buy roblox one of the best ones is rocket, wells farigo saying rocket is going a little lower >> how low has rocket already gone when that thing came public was one of the biggest ipos of all time that has just been disastrous. >> yes >> and you were a champion of that ceo >> no, dan gilbert -- >> no, the ceo >> i'm saying dan gilbert started it >> yes >> dan gilbert is a great man. >> yes, and he's had some health issues >> rocket has been a one-way ticket houston, we have a problem >> leveraged to homebuilding, down 45% in five days. >> we all act as if, oh, my god, we're in a bear market we've been in a bear market for most stocks since november, okay i would say half of the stocks, we peaked in march

and people are just saying, you know what, we're in a bear market, time to sell uwm holdings, time to sell compass it's time to sell redfin now? >> so we overshot, jim >> no, i'm just saying, people are coming on and saying it's time to sell stocks that are down 75% >> the toll downgrade today. >> 45% >> underweight >> do you know there's no firm recommending toll right now, no major firm, and there are more sells than there are -- there's equal number of sells and holds, look at that, toll brothers, will you look at that? >> i am looking at it. >> now is the time to sell toll. i want to sell dutch bros but not toll bros. with a name like utz >> cheese balls. >> cheese balls.

not baconator. she likes cheese balls, she eats them like this i'm dead >> are you trying to get divorced what's going on? >> been there, done that, partner. >> technically accurate. as a reminder, you can always get in on the cnbc investing club with cramer sign up at cnbc.com or use the qr code on your screen ten year below 3.25. the vix back below 32.

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there's a lot -- now things are coming back. i want to point out dow chemical, which is of course dow, an excellent company, it's downgraded from buy to hold at goldman. what's important is this stock -- i'm sorry, citi i didn't mean to insult goldman. this stock is down 271, it goes to 55, and citi chooses to downgrade it just when it yields 5% and is doing okay i think this is the kind of researches get to the point of toll brothers. i don't think there's a lot of value added, so there we go. >> based on what the fed is going to do in terms of breaking commodities. >> i totally get it, but the market is very forward-thinking. the reason why it's 55 is pretty much everybody recognizes it, and no one things they have it in them, and i'm betting with

jim against citi how about tonight, jim >> i've got energy with qualcomm it sells at nine times earnings, you would think christiana amon is willing to come on. no one cares about anything positive they're too busy selling out venice and czechoslovakia -- i'm sorry, zelenskyy and ukraine >> it has not happened yet there's full support, it's just europe -- the economy in europe and what's going to happen it's hard to run a factory on no energy >> they cheered chamberlain when he came home. >> yes, they does, because war is not good. >> jim, we'll see you tonight. with the gains here weekly losses are still large, but not

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welcome back to "squawk on the street." rick santelli, the last of the

breaking news. we're awaiting the may read for leading economic indicators. i don't see it crossing the wires yesterday. we're expecting a number bun 0.4 of 1% and -- down 0.4, hitting the wires. that means back-to-back negative months, minus 0.3 last month, mine news 0-- minus 0.4 do note all yields in the treasury complex are well below their intraday high yields on tuesday, the day before the fed raised rates 3/4 of a point. carl, back to you. >> rick, thank you very much good friday morning. welcome to another hour of "squawk on the street. i'm here with david faber. morgan brennan is on maternity leaving.

we've got some gains, vix is down a touch, and of course, a long weekend coming at us. >> we are 30 minutes into the trading seg. we'll start with alibaba, those shares are surging that -- to form a financial holding company. this is for biden's hopes for a possible ipo event -- another name rallying this morning is u.s. steel, showing better than expected current quarter company guidance the stock is up about 3.5%, getting a boost from rising de demand, toll brothers jim was talking about last hour, another downgrade at wells fargo, as the homebuilder sentiment drops to the lowest level in two years. >> david, let's get back to the markets and the recession fears. steve liesman got some comments

from kansas city's fed president esther george and some clarity around her dissent. >> thanks, ester george issuing a statement this morning explaining her dissent she said it was due to the uncertainty added by a 75 basis point hike she says bankrupt policy changes can be upsetting to households and small businesses she says it's important, it matters, and policy changes affect the economy with a lag. it's important to know george has been one of the more hawkish members of the fed she also was one of the early ones calling for an end to quantitative easing. she says in the statement she shares the commitment of the committee to bringing down inflation. she seems to have a point about the volatility, guys i want to quickly put some numbers on what rick was talking about the fed funds futures market, which is a peak rate of

375 in april that thing has moved around an awful lot. and you guys know, like the back of your hand the incredible volatility we've had in the stock market so -- and i think that comes from policy, at least in part, policy that's changing very quickly by the federal reserve david? >> yeah, i'm just curious, can it be what she's saying, unsettling in a way that 75 basis points is more unsettling that is 50 i don't know steve? >> think, you know, it's better for markets, which is better for the fed's transmission mechanism to have a clear idea of what's going to happen. and now we thought we had dialed in a 50 for july now, you know, it's 50 or 75, either way powell said the

market is leaning more towards 75 so i think it is better to have less volatility related to the making of fed policy i think george has a point there, but none of that works against the idea that rates have to go up and go up sharply the question is how sharply. she thinking a little more slowly. >> thank you, steve. >> sure. the nasdaq is rebounding every so slightly, of course, in today's trading, still on pace for what would be the tenth negative week of the last 11 our deirdre bosa has what's been the overall weakness in what we brokedly call the technology sector deirdre? >> yes, a extremely low month, adobe the latest data point that investors are digesting. quarterly results were fine, but it was the outlook that disappointed adobe is early to report

more companies could indeed following. now we already had soft commentary preannounced. adobe's issues largely nonoperational that is to say, mostly out of its control. those are the factors weighs, and those are the factors likely to continue to hear about from other companies. another group of tech that continues to bleed this year, just want to make a mention, the squall best of breed the stock huge run-ups during the pandemic yesterday on "techcheck," we had microsoft's chief commercial officer, who said best of breed, these names are luxury that most customers won't be able to afford of course, microsoft competes with a suite of its own products, but that does speak to another theme for technology stocks that's shifting spending habits,

what some see potential the nest shoes to drop. that's what we're on the lookout for, guys. >> the key is earnings revisions in many ways and what will things look like anything else from adobe jim was characterizing it not as necessarily lowering of guidance in a real way. any more granularity that came off the call >> it feels like for a lot of these software companies and cloud companies, analysts are concerned with the demand side they fear that would start to be another problem. they said demand is intact you were talking about the good numbers in the previous quarter, so that does add some optimism that demand picture, at least for now, is crucial. that is intact the commentary was that they are being cautious, and there's so

many uncertainties they would rather by conservative >> dee, appreciate that. we'll see you soon in the next hour of "techcheck." let's at any time the conversation this morning and bring in mira pandit, and tracy manage milan good to see you both mira, i wonder, we got past cpi and got past the fed, some argue we're in a bit of a vacuum until we get pce and eventually earnings what does the market feed off of, then, until then >> we're in a glass half full and glass half empty environment here, and that's why ear continues to see volatility. we saw good stability of markets back in may where we had some

degree of consensus around what the fed was going to do. after the latest, it calls into question what is the exact tack going forward? for that reason i think we'll see continued volatility until we get more data it's not just one cpi report, one consumer confidence report we're going to have to see a pronounced trend of data going in the right direction to really get a degree of consensus around the fed. we'll have to be patient. >> tracy, it's interesting, there's a bunch of tiny stuff, retail inventory, shipping rates, forecasts of used car inflation, all of it dumbing down, but the fed, powell seemed to make it clear it was about cpi and u-mich unless those are convincingly clear, the market does the are doesn't have a green light. >> that's right. we expect this to be a faster

than economic cycle than average, and much short -- shorter than the two most recent cycles as you mentioned totally get a rollover cpi, some improvement in consumer sentiment, they're likely to have to keep raising interest rates we think they'll go further this time than they have in recent hiking cycles. that means markets are likely to be fragile here in the interim we're telling investors they need to be patient here. we think along-term investors need to continue to diversify beyond traditional equities, into things like commodities and hedge funds if they have extra cash for the next couple months for quarters, and for shorter-term investors, they may just want to hold cash here. >> diversifying into a hedge

fund did i hear you say that? how is that going to help? >> hedge funds can't make money we do think they can be good diversify the strategies >> one of the landmines we'll have to look for, are preannouncements, and the agree to which earnings expect ache get reined in. how would you describe -- >> there is some degree of risk if we tie it back to the inflation story, we'll have to see some bad news before we see good news.

we're seeing a bit of slowing consumer demand, so i would take it with a grain of salt. yes, we do think that earnings have the potential to deteriorate and we'll need to hear it from companies that -- that there are signs of the some. >> yeah, margins will be a big part of that story enjoy the lodge weekend. thanks as we take a road map, including honing in on housing highest since '08. >> plus we'll be in miami, the self-proclaimed crypto capital. the energy sector on pace for the worst week in more than two years. e re" ensqwkn wh "ua o thstetcontinues.

mortgage rates touched the highest levels in more than a decade, as the hots housing market made a sharp u-turn our diana olick knows a lot more than i do about that, so let's ask her. diana? >> the short answer is no, but there are definitely red flags i'm going to show you a lot of

stats courtesy of black knight the average borrower credit score is at a report of 751. thanks to the run-up in home prices, those borrowers have record tapable home equity, how much you can take out and still leave 20% in $11 trillion in total. so really report low mortgage leverage today that's a significant cushion in case home prices soften or even fall there's very little negative equity today, as opposed to the great recession, where one in four homeowners was under water. what about the riskier loans there's 2.5 million adjustable rate mortgages outstanding today, compare that to 13 million in 2007 just before the crash. back then about 10 million of

those were facing reset. mortgage delinquencies are at a record low, just less than 3%. even with the jump in delinquencies during the first year of the pandemic, there's currently fewer past-due mortgages than there were before the pandemic there's still about 300,000 bowoers that have exhaust the forbearances, and still are delinquent, the big risk is recession. if people start to lose their jobs, they could make their mortgage payments. >> we'll by thinking about foreclosures for a while here. as we go to break, we'll take a look at grocery players. all lower today. kroger is under some pressure as a bunch of analysts maintain the stock in neutral or lower. despite earnings beat and they're guidance i think it was wells earlier in the weeks that these stocks'

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drop in prices for so many, is the city still as bullish? kate rooney has more. >> reporter: investors here in miami are feeling the pain as prices go bust many have bet their careers on this industry. they're still hanging on, but there's a sense of shock right now, especially from some of the younger crypto investors have crushed. many moved here during the pandemic and a bull market miami's crypto bull was one symbol of the hype now iamicoin is trading at a fraction of a penny. the mayor talked about it at one point as an alternative to taxes. while it did bring some windfall, he says it's a high-risk technology, it was

very much an economic experiment >> miamicoin has lost a significant 5789 of value from the high i think what is important is what kind of these technologies survive, and how do they change the economic framework going forward? that remains to be seen, but it's interesting to see different projects that have a variety of social benefits >> crypto has also taken the real estate market by storm in miami. more and more people are paying for luxury apartment, but crypto winter is putting a freeze on those deals. >> about a month ago, everybody walks on track lately things have slow down everyone says instead of watching and waiting for an apartment, these watch appeared wait for the market. >> reporter: involved ores have been sorered the sent misis really bullish. there's a lot of talk about

silver linings there's been a shakeout and the lower valuationses are seen as an opportunity for longer-term investors. >> miami has benefited from an influx of people, very business friendly suarez is very aggressive in getting businesses to locate how important is crypto and that wealth effect been one of their stadiums has a cr crypto -- it's everywhere. >> culturally it's been huge not a lot of crypto investors, backup tech investors and venture capital investors have located here you talk to real estate agents who say, yes, crypto has slowed down, but they're benefiting from things like foreign buyers, we talked to a nightclub owner, too, that's brought a lot of the tech and crypto people in. he says it's not slowing down

yesterday, but it has the effect of pulling back. suarez talked about the idea of rents maybe normalizing if there is a pullback. that could be good for the average person in miami, but this has been the boom and a rho enfor a lot of growth here has been tech and crypto they're definitely vulnerable if that part of the population doesn't have as much and not spending as much. >> miami has been unique, but not the only city to leverage the boom in crypto great live shot, by the way, kate rooney in miami. for more, chad, welcome back happy friday good to see you again. >> great to be here. thanks for having me on. >> we spent a good part of the money talking about, for example, three arrows. you think there will be more failures that pile up? >> i think we're just in the beginning stages of this it's hard to call a bottom, catch a falling knife and know exactly when things will

rebound. my sense is we're waiting for second and third-order effects of the failures of terra and luna there's just a lot of leverage up in the system, and it's very opaque it's starting to unwind. that's a painful process it's unclear when you get through an entire reset and correction, but overall i think it's probably a positive thing. >> classically prices are down, that's bad, but the underlying technology will continue to get support. that's good. how does it happen if retail and to some degree institutions feel burned by the price? where does the fuel come for more innovation? >> it's very unfortunate there was a conflation of innovation, financial innovation, which i think is the real story. instead we had financial

instability because of the this opaque leverage, you couldn't tell where all the risks were building up. it's really unfortunate people lost money, and i think it will set back a space, because you will lose some early adopters or some of the people who came in new to the space, but i think on the other hand, the fundamental technology here and adoption curve we see institutions coming in, how you can get your financial system to operate the speed of the internet, those are the things that need to happen and will keep happening. you have a lot of failures after the dot-com bubble, and it doesn't change the adoption curve for the internet that's the same model we need to use here. >> innovation and speculation go together a lot as well this is a good opportunity for you, charles, to tell people what your company does what does paxos do and how are

you positioned for this future you are describing >> we're an infrastructure firm. paypal, venno, about over 600 million end users that are powered through the partnerships we have. we're trying to bring people into the space by bringing in brand names. when i look here, i also have to think about how are we positioned really fundamentally we built a fortress believed. you have to have an all-weather business model in fact, we're doing about as interrates rise. we're still hiring we may hire less quickly to me this is an opportunitiy. how do you allow mainstream adoption fundamentally this will bring up a point around, how do you make sure you're regulated in a way that allows people to trust you.

most of these values were outside the u.s. and we spent a lot of time invest -- that's how you get real large institutions coming into the space. >> so what are your future expectations in terms of regulation and what that will mean in term of codifying some of the things you're discussing? >> there's bills working through congress i know it's still nascent. there's a lot of give-and-take generally it's pretty pragmatic. really we want innovation can stay in the u.s., in some sense by having the right type of framework of what is a stable coin, what is a security, what is a token, it will allow more wide dodd prep adoption over time that's why we have apreached a regulatory-first model not because we thought it was a

safe thing to do, but the way you create the biggest outcomes. having the internet-based financial system that can be 24/7 is a fundamental shift, but if you don't set it up the correct way, you can have failures like this that's where regulation done the right way, can create certainty and clarity. i think it's tough when you build your house of straw, a storm happens, it blows down and people wonder why. when you have regulation and when you have transparency, it makes it easier to people to realize you have built a strong house. >> finally, the bitcoin, is there any doubt it benefits from having all these other down tossed in the trash? >> think this is positive for bitcoin. we'll know we're getting close to a bottom when it starts to bottom it's the largest, most liquid,

most largely adopted so i think when we see it hit bottom, i think we'll know we're getting close to the bottom in the sector, because it is the bellwether i think there's real value it's bringing there's thousands of tokens. there's going to be a process of creative destruction, where you need to some products work and some don't like mayor suarez was saying, this is an opportunity to find out which idea you really get behind, and continue to invest in i think bitcoin is absolutely here to stay, because maybe you have less distractions and less ideas that are pretty marginal. >> definitely holding 20k again today. have a great father's day. >> thanks a lot. great to be on well, after the break, we're going to check in with liz anne

saunders she's seeing some similarities between the nasdaq now and back in 2008. she'll explain, when we're back. ♪ ♪ we all need a rock we can rely on. to be strong. to overcome anything. ♪ ♪ to be... unstoppable. that's why the world's largest companies and over 30 million people rely on prudential's retirement and workplace benefits.

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according to a new survey, 60% of 4078 owners are less comfortable making large purchases for their home 34% agree that inflation has caused home improvement delays construction costs are also up 19%, prompting some people to hold off making changes to that you are home vince mcmahon is stepping back from his duty as they

investigate allegations. they were looking into mcmahon allegedly paying an employee $3 million to keep her quiet about an alleged affair between the two of them. the dow is down 165, although we are seeing oil back to 112 that's going to take you back to may 25th our senior markets commentator mike santoli joins us with more on today's action. >> we came into the week asking the question, are things kind of getting so bad they could be good short term, tactically. the conclusion monday was, not yet. we're getting there pretty close. what we are talking about is how just rare extremes are showing up in the level, volume appeared breadth of the selling we have observed you can look at that in terms of a bare minimum number of stocks that are, let's say above their

own 50-day average the number below the 200-day certainly has room to go down to extremes the options hedging we have seen has been somewhat extreme or getting there, but not necessarily where you necessarily want to see it i want to put this in context, too. when you get really oversold and surgeally people rob have been looking to liquidate urgently and shows you basically one side of the trade that helps in a bull market to know when to buy a dip you have a higher threshold of decide things are over now broader picture, i think you would be lucky if this was it. things have to break our way for this to be all the damage. it does mean short term we have a bounce soon. it probably will happen, and

then you have to evaluate whether that bounce seems like it's broadly sponsored, real money getting back in. other types of investors arguably have been hanging on earnings estimates if that's a shoes to drop, we'll see if that's priced in. >> how do you explain equity flows to people? >> i mean, there's a habit about it people have obviously -- first of all, it depends on what you're measuring on the weekly flows, there was a bit of an outflow, so i don't know we're necessarily talking about a huge rush in, but i think the math says you should be rebalancing into stocks right now, if you're going to be following one of those programs. i don't know how much you have to see an exodus from retail accounts people are pretty bearish. i think one of my explanation is people hate bonds more than they fear stocks. maybe that's about to change

you are seeing bonds rally a bit, but they seem like, fine, i can't see myself buying bonds or rotating into bonds at this moment for the fed >> you know, if earnings hang in, i think was one of the more important things you said there. when are we going to get a test of that? >> in a few weeks. july 14th? you'll get a test of it. >> everybody is going to say we're not worried about the first half it's what we want to see later in the year. they'll start to tell you what to expect. outside of energies, forecasts are declining. so you're seeing some rationalization. i think it's a real tough trick if you're an analyst or strategist companies sell into the nominal gdp.

that's what it's made up of. it's almost funny they may know feel like the top line will be challenged analysts don't have a good read on margins the company has to tell you, and that's why i think the preannouncement season could help >> mike, thanks. let's bring in director of glock macro yuri timer and liz ann sonders. this nasdaq -- carl retweeted it, just tell us what you're thinking of now versus '08. >> well, first, just to make it clear what i tweeted was the drawdown in the forward pe nothing is any suggesting that akin to what we saw in 2008. technically there's probably a

bit more work to do. i think mike made a good point but ex-energy, you have earnings expectations for second quarter in negative territory. i think that bar is still too high i think the real key is a story around -- i fear the next leg that hasn't been addressed is the weaknesses in earnings stream i think we're largely priced in the change of liquidity environment, the financial conditions, maybe the slowdown in economic growth, maybe not a deep recession, but i don't think what's in prices yet is the deterioration in earnings. >> why not >> well, because we haven't really seen the needle move much at all in those estimates we think not only is a recession much more likely, but it's possible that the -- we may find

as we're having this conversation mid june, that we're already in one, based on the fact they go back to the peak and the aggregate data to date the start of a recession. i think more that this just what we're hearing, more than what we're seeing on the consumer side of the economy, there's been almost no budging on those forward estimates. i think the bar is just a bit too high. >> yuri, as for bonds, mike just said -- who knows, but maybe the mood starts to change. esther george explained this morning why she thought 50 was enough kashkari is on the tape saying beware of front loading too much >> i think the whole conversation is not nearly as important to where is it going to end up, right a week ago it was in the low 3s, now it's near 4, a but lower

today. to me that really is the most important thing and how quickly you get there. the bond market has priced all of this in it really doesn't matter how the fed against there. the fed funds target -- target rate is not one that everyone uses it's yields and the cost up capital implied in the model that are the most important. to liz ann's point -- and by the way, a pleasure to be on the show with her, i think for the first time -- this has been a rapidly moving target. the fair value that you can calculate from that, in terms of valuing the present value of future cash flows was around 16 or so. that number is now 14 1/2, 15, so it's a moving target. as much as the market as derated

the p/e ratio has -- and it may not be enough. part of that is surprising, because the economy is slowing, but in part, you know, the '70s earnings never skipped a beat. even the second half of the '40s after world war ii, earnings never skipped a beat so for a this has all been valuation, not earnings. even if the earnings shoe doesn't fall, and maybe it won't, that this thing will not be over until investors get a cushion for the rink that it does hold. in other words, if the fair value is 15 times forward earnings, maybe the market doesn't bottom until the investors get a couple points more than that to protect them in case it does. that's when i'm going to feel more comfortable this thing might be getting to a conclusion. >> to that point, his ann,

urrien mentioned 15, and a lot of arguments are for 15 plus, is that a recession target, 200 >> first, jurrien, thank you for the nice comments. a pleasure to be on with you, too. i agree that it undershoots on the down side. we can look at inflation ranges to see what the average p/e has been, but valuation, is now forward p/e. we know what the consensus for the "e" is, but it's a searchment indicator may be better put, an indicator of sentiment. that's always the unknown factor, the big driver of valuations often swinging too high on the up side, too much on the low side i think we'll have more color when we know what the plug in the denominator is, once we get

into second quarter earnings season, but i don't think typically the stopping point is at an history norm, especially as inflation doesn't recede in somewhat short order that suggests the p/e has to go down a bit further. >> jurrien, i need you to keep your answer fairly shot, if you can. you have a lot of interesting chart. i stopped on inflation now versus the late '60s why is that of importance? what are people reading this are supposed to gather >> i look at analogs fully aware that history doesn't repeat, but that doesn't mean we can't learn, and i highlighted 1940s as an analogy on you pertain, and the '60s is when inflation became a promise in the 1970s. it's also when the 60/40 paradigm flipped on its head

we went from negative correlation to positive in the mid '60s '68 was a period of rampant speculation in the space and tech stocks. any company with the word "tronnics" in it was fair game now we're accelerating even faster than then >> thank you both. have a great weekend. >> you too. >> thank you. as we go to break, check out shares of seagen. >> seattle genetics is what we used to call it. diplomat we talk with jim earlier? and then jim was actually bringing it up you never know with him. >> well, we've reached out to

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the ticker xle on pace for what would be the worst week since march of 2020. still, it's had a very strong year exports driving up the cost of natural gas, that's up over 340% here to help us understand it all, ed more is. ed, let's start off with this week, what's your take on this move down that we have seen of late >> i think the move down is a reflection of everything we're seeing in markets related to growth -- but people are looking at recession and not raising the probability of it, with that comes offly a drop of ex

expectations others things are going on in natural gas. >> yeah, do you hear anything along the lines of cessation of russian hostilities in ukraine as as well some of the european leaders wanting zelenskyy to kind of negotiate some sort of peace that might be a positive for the markets overall? >> that's certainly one of the three bits of noise in the market in terms of both natural gas and oil. the conflict going on still is a bit of noise in that the -- the likelihood would be eve if there was an agreement on the political front that we would still have guerrilla activity. we would still have supply disruptions in the marketplace >> yeah. >> and then there are the other factors at work as well, most of which are more bullish than not, disruption risk in libya, libya

production has fallen again, more significantly than people had thought. the nigerian elections leave a lot of doubt about the stability of nigerian production we still have overhanging both on the positive and megtive side in terms of supply the noise of that, is iran going to put more oil on the market or less oil in the market i would say the market remains tenuous. it has unbelievably low li liquidity. with that comes volatility moving 5 to $10s a day you don't know when you wake up what it is going to do that morning. >> that is for sure. we had a discussion on the desk yesterday about whether or not, if it hadn't been for putin, would we even be talking about energy inflation right now i remember when you had a short oil second half call that was prior to the invasion, but i wonder if you think the putin price hike, so the speak, is legit. you were for a base case

in the 60s before that war began. >> well, what's happened is not so much supplies -- demand balance. it is the dislocations that occurred as a result of the european refusal, u.s. refusal to buy russian oil, russian products, russian natural gas. the market is looking from a european perspective for other places at the same time, because of the china slowdown we are having the mirror image taking place in china with an increase in inventory, which is kind of astonishing on how disintegrated the world has become it is no longer one market it is a bunch of different markets, some of which are pricipric brent up, but west african crude at a cream yum to brent in a wang of 13 to 16 dollars a barrel at the same time we are seeing a

40 dollar discount from brent to russian crude. it is a remarkable dichotomy emerging in the marketplace. it is creating noise about where we think the forward curve is going to go. i would say we still think the forward curve is wildly overstating where the market will be by the end of the year because these dislocations are going to get resolved to one degree or another. we are already seeing pickup in non-opec production, finally we have the u.s. back at the 12 billion barrel a day mark. it had been down to 10.2, following the 13 it reached in the spring, early spring of 2020 i would say the big bull factor in the market people are ignoring has been the loss of u.s. production capacity u.s. production today would have been at 14.7 or so million barrels a day not at the 12 we have just come back to if we had not had the pandemic and the drop in drilling, i think that is even more critical

than looking at the disruption to supply from -- from, you know, the swearing off of russian crude and product. but, you know, the market will eventually balance and i think the slowdown in growth is going to be pulling down demand significantly as we go forward and as mr. putin said, as did the deputy prime minister this week at the so-called st. petersburg international economic forum, russian capacity is going to go up and russian refining capacity is going to be more highly utilized and we are not seeing a cut off of russian supply, but a reallocation of it to other parts of the world. >> thank you i appreciate that explanation. quick reminder by the way. we will have our upcoming documentary objection on mobile at the crossroads with regards to some of these issues, particularly production. you want to see what the permian looks like 9:00 p.m. eastern next

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stocks of a lot of the large technology companies means some big losses for billionaires. robert frank has more. i will get out my violin, robert >> david, it's the billionaires, and it is the everyday investors, because investors in total have lost more than $10 trillion in the stock market so far this year. that's bigger than the pandemic crash or the financial crisis in dollar terms, of course smaller on a percentage basis. look at the big tech companies among the hardest hit are apple. $100 billion this week microsoft, of $0 billion this week, google, 65 tesla and amazon both losing $65

billion year to date year to date, the top ten billionaires have lost musk and bezos and zuckerberg down 66 or $67 billion other big tech losers include larry and sergei of alphabet mackenzie scott down $32 billion after she gave away $12 billion and doesn't add in crypt losses. you look at a market cap bases we are down about $2 trillion in crypto loose losses. a lot of losses, at the top, at the middle, at the bottom. all across the board. >> it was a very tiny violin, by

way, playing a very sad tune for those. the numbers themselves are extraordinary. we are out of time it shows you losses like that, how incredibly wealthy, the accretion of wealth that's happened these last few years. >> 100%. that's why the wealth effect is going to take longer to kick in. because there is so much wealth and that big cushion at the top. that's going to do it for us on "squawk on the street." that's robert frank. see you next week. tecumseh starts now. good friday morning, welcome to tecumseh. i'm deirdre bosa, coming to you from the home the winning warriors we have got an argued for a near term rally, perhaps some opportunity, then adobe shares cloud surge. more on what a report means for